Lam Research Corporation (LRCX) is looking forward to a strong quarter

Lam Research Corporation (NASDAQ: LRCX) stock jumped 2.01% on Monday to $635.65 against a previous-day closing price of $623.11. With 1.26 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.17 million shares. During the session, the Semiconductor Equipment & Materials company that operates in wider Technology sector, reached to the highest price of $636.49 whereas the lowest price it dropped to was $618.21. The 52-week range on LRCX shows that it touched its highest point at $726.53 and its lowest point at $299.59 during that stretch. It currently has a 1-year price target of $677.36. With its current market cap of 88.74 billion, LRCX has annualized dividend of $8.00 while the current yield stands at 1.26%. Beta for the stock currently stands at 1.50.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of LRCX was down-trending over the past week, with a drop of -4.22%, but this was down by -1.99% over a month. Three-month performance surged to 3.75% while six-month performance rose 25.04%. The stock gained 53.75% in the past year, while it has gained 51.24% so far this year. A look at the trailing 12-month EPS for LRCX yields 33.15 with Next year EPS estimates of 35.84. For the next quarter, that number is 6.13. This implies an EPS growth rate of 1.40% for this year and 30.03% for next year. EPS is expected to grow by 8.33% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 15.10%.

Float and Shares Shorts:

At present, 134.05 million LRCX shares are outstanding with a float of 132.06 million shares on hand for trading. On Aug 30, 2023, short shares totaled 2.79 million, which was 2.11% higher than short shares on Jul 30, 2023. In addition to Mr. Timothy M. Archer as the firm’s Pres, CEO & Director, Mr. Douglas R. Bettinger serves as its Exec. VP & CFO.

Institutional Ownership:

Through their ownership of 88.54% of LRCX’s outstanding shares, institutional investors have majority control over the company.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 24, 2023, LRCX reported revenue of $4.64B and operating income of $1.48B. The EBITDA in the recently reported quarter was $1.57B and diluted EPS was $8.74.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for LRCX since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With LRCX analysts setting a high price target of $825.00 and a low target of $545.00, the average target price over the next 12 months is $702.00. Based on these targets, LRCX could surge 29.79% to reach the target high and fall by -14.26% to reach the target low. Reaching the average price target will result in a growth of 10.44% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Dividends & Yield:

In terms of dividends, LRCX has a current ratio of $8.0, which is $8.0 over the trailing 12-months, while a dividend of $5.14 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and LRCX currently yields $1.13. In the past year, LRCX’s dividend yield has been $1.13, but when looking at the stock over the past five years, its yield has been $1.44. Accordingly, LRCX has a current buyback yield of $2.38. This was $2.38 for the TTM, and it was $6.16 for the past five years.

Summary of Insider Activity:

Insiders traded LRCX stock several times over the past three months with 3 Buys and 7 Sells. In these transactions, 13,756 shares were bought while 18,333 shares were sold. The number of buy transactions has increased to 31 while that of sell transactions has risen to 57 over the past year. The total number of shares bought during that period was 88,265 while 61,138 shares were sold.

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